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CONSOLIDATED FREIGHTWAYS INC. REPORTS SECOND QUARTER NET INCOME

 PALO ALTO, Calif., July 20 /PRNewswire/ -- Consolidated Freightways Inc. (NYSE: CNF) today reported second quarter net income of 10 cents per share (nine cents per share fully diluted) or $3.6 million for common shareholders. This compares with a loss of seven cents per share, or $2.5 million, in the same quarter a year ago.
 For the first six months of the year, the company reported net income of $7.2 million or 20 cents per share, compared with a loss of $5.8 million or 17 cents per share in the comparable six months of 1992, excluding $70 million ($1.99 per share) cumulative adjustment relating to the 1992 adoption of Statement of Financial Accounting Standards No. 106 "Employer's Accounting for Post Retirement Benefits Other than Pensions."
 Operating income in the second quarter was $25.3 million compared to 1992 second quarter operating income of $16.2 million. Revenues in the second quarter were $1.02 billion, an increase of 1.7 percent from revenues of $1 billion a year ago.
 "We are pleased to report the third consecutive quarter of net income at the CF companies. We have now completed six quarters of improved financial results before the 1992 special charges and accounting changes," said Donald E. Moffitt, president and chief executive officer of the company.
 Moffitt attributed the increase in profits to continued strong financial results in the company's regional trucking business and "consistent and dramatic" improvement in its air freight operations.
 "While we are confident that these improved results will continue, the CF companies are subject to the problem of eroding yields that is affecting all segments of the transportation industry," he said.
 CF MotorFreight, the company's long-haul less-than-truckload motor carrier subsidiary, had second quarter operating income of $6.4 million, compared to operating income of $12.6 million in the same period last year. Revenues in the quarter were $523.9 million, a decline of 3.9 percent, compared to revenues of $545.1 million a year ago.
 For the first six months of 1993, CF MotorFreight profits were $16.5 million, compared to $27.7 million in the same period of 1992.
 Moffitt said that CF MotorFreight's profits were impacted by continuing competitive pressures that have made pricing the company's principal concern. The company's profits also were affected by a 3.4 percent increase in wages and benefits under the industry's labor contract that was effective beginning April 1.
 "CF MotorFreight has been effective in controlling costs and in its restructuring, which is positively addressing business levels," Moffitt said. "A number of carriers in the industry have announced a rollback of discounts on freight rates. CF MotorFreight will implement its own 2 percent rollback in discounted rates effective August 2. We are optimistic that this move to improve yields will be beneficial for the remainder of the year."
 Total tonnage in the quarter for CF MotorFreight decreased 2.4 percent while higher-rated less-than-truckload tonnage decreased 2.1 percent.
 Con-Way Transportation Services (CTS), which operates regional LTL trucking and intermodal truckload businesses, had record operating income of $18.5 million in the second quarter, up 25 percent from the $14.8 million earned in the second quarter a year ago. CTS revenues were a record $198.9 million in the second quarter, an increase of 9.5 percent compared to revenues of 181.6 million in the second quarter of 1992.
 CTS operating income of $34.4 million for the first six months of the year also was a record. The record levels of profit occurred despite continued costs for expansion, primarily in the southwest and southeast, Moffitt said.
 "We are especially pleased with these record results of the Con-Way organization, which celebrated its 10th anniversary in the second quarter," Moffitt said. "The five Con-Way companies, while operating as separate and distinct entities, are united in their efforts to provide the best regional trucking and intermodal service available in the industry."
 Total tonnage in the quarter for Con-Way Transportation Services increased 18.3 percent while the higher-rated less-than-truckload tonnage increased 10.2 percent.
 Emery Worldwide, the company's air freight unit, reported operating income of $453,000 in the second quarter compared with an operating loss of $11.2 million in the second quarter a year ago. All of the improvement occurred in Emery's commercial air freight operations. Air freight revenues were $297.4 million, up 7.7 percent compared with second quarter revenues of $276.1 million in 1992.
 Moffitt noted that Emery's second quarter profits are encouraging and show that the level of customer confidence continues to improve, which is reflected in a 10.5-percent increase in revenue and a 17.4-percent increase in tonnage for Emery's commercial freight operations.
 "The results for Emery are after accruals of $5.1 million for a special 'turnaround' incentive compensation plan covering nearly 7,000 non-contractual employees," said Moffitt. "This recovery bonus plan was approved by the Board of Directors as incentive for these employees, who have achieved a remarkable turnaround at Emery, improving operating income nearly $50 million a year for three years."
 The Emery plan is contingent on air freight operations being profitable for the full year.
 Consolidated Freightways Inc. is a diversified freight transportation company with businesses in long-haul and regional trucking, air freight, intermodal services, customs brokerage and logistics management.
 CONSOLIDATED FREIGHTWAYS INC. AND SUBSIDIARIES
 Condensed Statements of Consolidated Operations
 (Dollars in thousands except per-share amounts)
 Three Months Ended
 June 30,
 1993 1992 (A)
 Revenues
 CF MotorFreight $ 523,919 $ 545,078
 Con-Way Transportation
 Services 198,933 181,604
 Emery Worldwide 297,372 276,085
 Total $ 1,020,224 $ 1,002,767
 Operating Income (Loss)
 CF MotorFreight $ 6,393 $ 12,634
 Con-Way Transportation Services 18,469 14,799
 Emery Worldwide 453 (11,227)
 Total 25,315 16,206
 Other Expense, Net 8,378 (10,918)
 Income before income taxes
 (benefits) and extraordinary
 charge 16,937 5,288
 Income taxes (benefits) 8,545 (4,510)
 Net Income Before Extraordinary
 Charge 8,392 9,798
 Extraordinary charge from early
 retirement of debt, net of
 related income tax benefits
 of $4,561 -- 7,428
 Net Income 8,392 2,370
 Preferred Stock Dividends 4,747 4,865
 Net Income (Loss) Applicable to
 Common Stock $ 3,645 $ (2,495)
 Average Common Shares Outstanding 35,402,458 35,199,600
 Primary Earnings (Loss) Per
 Common Share:
 Income before extraordinary charge $ 0.10 $ 0.14
 Extraordinary charge -- (0.21)
 Net income (loss) $ 0.10 $ (0.07)
 Fully Diluted Earnings (Loss)
 Per Common share:
 Income before extraordinary charge $ 0.09 $ 0.13
 Extraordinary charge $ -- $ (0.19)
 Net income (loss) $ 0.09 $ (0.06)
 (A) Restated for the prospective adoption, effective Jan. 1, 1992, of SFAS No. 109 and SFAS No. 106 in the second and fourth quarters, respectively.
 CONSOLIDATED FREIGHTWAYS INC. AND SUBSIDIARIES
 Condensed Statements of Consolidated Operations
 (Dollars in thousands except per-share amounts)
 Six Months Ended
 June 30,
 1993 1992 (A)
 Revenues
 CF MotorFreight $ 1,044,081 $ 1,084,731
 Con-Way Transportation
 Services 386,900 355,498
 Emery Worldwide 582,224 553,165
 Total $ 2,013,205 $ 1,993,394
 Operating Income (Loss)
 CF MotorFreight $ 16,510 $ 27,748
 Con-Way Transportation Services 34,379 28,187
 Emery Worldwide (4,224) (28,636)
 Total 46,665 27,299
 Other Expense, Net (14,247) (23,663)
 Income before income taxes
 (benefits), extraordinary charge
 and cumulative effective of
 accounting change 32,418 3,636
 Income taxes (benefits) 15,758 (5,343)
 Net Income Before Extraordinary
 Charge And Cumulative Effect of
 Accounting Change 16,660 8,979
 Extraordinary charge from early
 retirement of debt, net of
 related income tax benefits
 of $4,561 -- 7,428
 Cumulative effect of change in
 method of accounting for post
 retirement benefits, net of
 related income tax benefits
 of $42,899 -- 69,991
 Net Income (Loss) 16,660 (68,440)
 Preferred Stock Dividends 9,496 7,395
 Net Income (Loss) Applicable to
 Common Stock $ 7,164 $ (75,835)
 Average Common Shares Outstanding 35,381,427 35,165,090
 Primary Earnings (Loss) Per
 Common Share:
 Income before extraordinary charge
 and cumulative effect of accounting
 change $ 0.20 $ 0.04
 Extraordinary charge -- (0.21)
 Cumulative effect of accounting
 change -- (1.99)
 Net income (loss) $ 0.20 $ (2.16)
 Fully Diluted Earnings (Loss)
 Per Common share:
 Income before extraordinary charge
 and cumulative effect of accounting
 charge $ 0.18 $ 0.104
 Extraordinary charge $ -- $ (0.19)
 Cumulative effect of accounting
 change -- (1.75)
 Net income (loss) $ 0.18 $ (1.90)
 (A) Restated for the prospective adoption, effective Jan. 1, 1992, of SFAS No. 109 and SFAS No. 106 in the second and fourth quarters, respectively.
 -0- 7/20/93
 /CONTACT: J.R. Allen of Consolidated Freightways, 415-494-2900/
 (CNF)


CO: Consolidated Freightways Inc.; CF MotorFreight; Con-Way
 Transportation Services; Emery Worldwide ST: California IN: TRN SU: ERN


TM-GT -- SJ004 -- 3583 07/20/93 16:51 EDT
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Date:Jul 20, 1993
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